Analysis of the Effect of Financial Development on Industrial Concentration and Economic Growth in Iran: Spatial Dynamic Panel Data Approach

The present study aims at analysing the effects of financial development on industrial concentration and regional economic growth in Iran.
For this aim, we have specified econometrics models and estimated them by using spatial system dynamic panel data (Arellano-Bover/ Blundell-Bond)ý for 28 provinces of Iran over the period 2001-2011.
The results indicated that financial development has a positive and meaningful effect on regional economic growth and regional economic growth has a positive and meaningful effect on the financial development and financial development does not meaningful effect on industrial concentration.